Elon Musk is seeking an astonishing $79 billion to $134 billion in compensation from OpenAI and Microsoft, asserting the artificial intelligence firm defrauded him by abandoning its initial nonprofit objective, as first reported by Bloomberg. This substantial amount was calculated by C. Paul Wazzan, an expert financial economist with extensive experience, having been deposed almost 100 times and testified in over a dozen complex commercial litigation trials.
Wazzan, an expert in assessing valuations and damages in significant legal conflicts, concluded that Musk deserves a considerable share of OpenAI’s present $500 billion valuation, considering his $38 million initial investment when he helped establish the company in 2015. (To put it in perspective, this would represent a staggering 3,500-fold return on Musk’s original capital.)
Wazzan’s detailed assessment integrates Musk’s foundational financial input alongside his technical expertise and business insights provided to OpenAI’s founding team. This led to a calculation of unjust enrichment totaling $65.5 billion to $109.4 billion for OpenAI and an additional $13.3 billion to $25.1 billion for Microsoft, which currently holds a 27% stake in the AI company.
Musk’s attorneys contend he merits recompense akin to an early-stage startup investor, expecting returns “many orders of magnitude greater” than his original capital. However, the immense size of the damages requested highlights that this legal dispute is likely not solely driven by financial motives.
Presently, Musk’s individual wealth is approximately $700 billion, firmly establishing him as the planet’s wealthiest individual. As Reuters recently observed, his fortune now surpasses that of Google co-founder Larry Page, the world’s second-richest person, by an astonishing $500 billion, according to Forbes’ billionaire rankings. Furthermore, in November, Tesla stockholders independently endorsed a $1 trillion remuneration package for Musk, marking it as the largest corporate compensation deal ever recorded.
Considering these circumstances, even a $134 billion settlement from OpenAI would constitute a comparatively minor increase to Musk’s immense fortune. This context likely solidifies OpenAI’s view of the lawsuit as part of an “ongoing pattern of harassment,” rather than a genuine financial complaint. OpenAI had already reportedly issued a letter on Thursday to its investors and business affiliates, cautioning them to anticipate “deliberately outlandish, attention-grabbing claims” from Musk as his legal action against the company proceeds to trial in April. The proceedings are scheduled to take place in Oakland, California, approximately 15 miles east of San Francisco.